Cat increases quarterly dividend 17 percent

Caterpillar Inc. increased its quarterly cash dividend by 17 percent to 70 cents a share after a vote Wednesday by its board of directors.

The increase, announced during Caterpillar’s annual meeting of shareholders, is payable Aug. 20 to shareholders of record at the close of business on July 21, the company said.

"This dividend increase demonstrates our financial strength and confidence in long-term prospects for the company,” said Caterpillar Chairman Doug Oberhelman.

“Despite business and economic uncertainties around the world, our balance sheet has remained strong – the strongest it's been in more than two decades – positioning us to perform through the cycles. In addition, our global team has delivered solid operational and financial performance, enabling Caterpillar to return over $5 billion of capital to stockholders through stock buybacks and dividends since the beginning of 2013," he said.

"We are proud of our long dividend history, in which Caterpillar has paid a cash dividend to our stockholders every year since the company was formed in 1925. We are equally proud that during this period, our equipment and services have helped build, grow and power the world," Oberhelman added.

Caterpillar has paid higher dividends to its stockholders for 20 consecutive years, and since 1998 the company's cash dividend has more than tripled.

About the Author

Paul Gordon is the editor of The Peorian after spending 29 years of indentured servitude at the Peoria Journal Star. He’s an award-winning writer, raconteur and song-and-dance man. He also went to a high school whose team name is the Alices (that’s Vincennes Lincoln High School in Indiana; you can look it up).